This is just the beginning for the new energy world

24/01/2023

"In the new world of cleaner, renewable power, solar and wind can’t just be turned up and down as needed, so with more intermittent wind and solar smart, flexible customers will be critical for the functioning of the new system."

Michael Lewis, Chief Executive of E.ON UK

The balance of the energy is shifting, putting all the power – literally and figuratively – in the hands of consumers.

In the old energy world we had dirty but flexible fossil-fuelled generation supporting customers who turned on their demand whenever they wanted to, and supply responded accordingly (think of the old adage about millions of people putting the kettle on at half-time in the FA Cup Final, and the grid responding to meet that demand).

 

In the new world of cleaner, renewable power, solar and wind power can’t just be turned up and down as needed, so with more intermittent wind and solar smart, flexible customers will be critical for the functioning of the new system.

Imagine what we can do when you've got 30 million electric vehicles (basically batteries on wheels) that are able to connect to and supply the grid with spare power. 

Those 30 million cars hold the same power as roughly three days of the UK’s total electricity demand. Add in the potential of millions of homes fitted with solar panels, and perhaps their own batteries to store that renewable power, and there is a huge amount of stored energy in the system able to support the grid and a more sustainable way than just bringing on more power stations.

And that’s where the Demand Flexibility Scheme comes in. This is the first step towards that new energy future based on the collective actions of hundreds of thousands of people and businesses around the country.

It only launched widely in November and already as many as a million households are choosing to take part across the country, leading to a dramatic drop in energy demand at peak time events and rewarding customers for helping the National Grid ensure security of supply for the nation.

E.ON | Jean Fiddes - Demand Flexibility Scheme 

Customers have chosen to avoid using their TVs, dishwashers, ovens, washing machines and use less light in order to help reduce demand – with more than half a million of our own E.ON Next customers approached to take part through our energy saving events. We’ve paid out more than £240,000 to customers who saved energy and met their reduction targets, helping us take action for climate.

We are now encouraging 500,000 of our 5.5 million customers to take part in these events, rewarding them with credits on their bills. But we’re also seeing that customers want to be part of a wider movement – making an energy world that protects the planet and makes sure the greener choice is also the cheaper choice.

DFS right now is about reducing demand, switching things off. The next and most exciting stage is identifying where you can be more flexible in your home or business, using the technology you have in a smarter way rather than the simple on/off choice.

For example, your EV is parked and charging overnight but you only need 20% of its battery to get you to work in the morning. This is where suppliers can step in to manage the battery remotely within set parameters, using the power to support the grid but making sure the charge you need is there when you want it. That is a level of partnership that we haven’t seen yet but the energy saving events are proving that customers want to play their part. It’s encouraging for this smarter future.

This shows the power of what you can do if you have the capability of a smart network and that's why I've been banging the drum for smart meters for the last five years. It's critical to having a modern flexible electricity system which is what we need for the future.

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